HedgeFund

Chat With Traders: Meet The Market Makers On The Other Side Of Your Trade With Erik Swanson September 2, 2021

September 2021 - Hedge Fund

by AlphaMaven

To access the podcast click here.

Erik Swanson’s the CEO of Simplex Trading…

While unknown to many, the Chicago-based trading firm is one of the top market makers in U.S. equity options—providing liquidity in (almost) every listed options contract, and in recent times, transacting upwards of 2-million contracts daily.

In our chat, Erik pulls back the curtain, giving a rare insight to how market makers operate; from quoting to hedging, and the complexities that take place in between.

Topics & Timestamps:

Please note: Exact times will vary depending on current ads.

01:40 – Trader to CEO, about Simplex, being a registered market maker.

06:40 – Options market making: quoting, fair value, hedging, cash equities, risk.

33:50 – Gamestop saga, the unimaginable rise of options volume (2021).

41:00 – Payment for order flow: common criticisms, mechanics of order routing.

50:10 – Maintaining an edge over competing firms.

To access the podcast click here.

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